Month: June 2016

Just below one of the most productive shales in Texas is another treasure trove of crude oil. One layer underneath the Eagle Ford Shale is the Buda limestone formation, a sedimentary rock formation that is said to be twice as thick as the Eagle Ford in some areas.

This could mean that the Buda limestone potentially contains much more crude oil and hydrocarbon than the Eagle Ford. Current studies of the formation have not yet yielded definitive statistics.

Like its neighbor above, the Buda limestone needs to be drilled horizontally. But since the formation is already fractured naturally, it costs much less to drill and complete a well. There would be no need for expensive chemicals and sand mixtures to extract crude oil. And the rig models needed to dig the formation are less costly and more readily available.

Several companies have already tapped into the opportunities present in Buda limestone since the start of the decade. And it could not have come at a better time as the discovery of the abundance of crude oil in Buda came during a period of high oil price, and companies were looking to slash the cost of oil by increasing the supply.

Brian Alfaro is the founder and president of Primera Energy LLC, an oil and gas company headquartered in Texas. The company provides its shareholders with the highest quality, unconventional shale prospects. To read more about the company and the industry, follow this Facebook page.

A combination of inexhaustible reserves and innovative technologies have propelled Texas to the top of the list of energy-producing states. In the U.S., the Lone Star State leads in oil reserves. It produces the highest amount of oil, natural gas, and lignite coal. The state also yields more wind power than any other state.

Even globally, Texas is an energy powerhouse. According to the American Petroleum Institute, the state ranks second in the world for natural gas production and seventh in oil. In 2015, an average of 3.4 million barrels of oil per day was produced, which is almost the same output level of known middle eastern major oil exporters Iran and United Arab Emirates.

As oil and natural gas production from shale has flourished, incomes have been raised, and utility rates were reduced. These have allowed Americans to save an equivalent of $1,200 in real disposable household income.

The boost in energy production has also helped the establishment, reopening, and expansion of businesses in the chemical and manufacturing industries. These have led to an industry output of $37 billion and the creation of 81,000 permanent jobs back in 2013, according to then Governor Rick Perry.

With Texas continuing to fuel the nation’s hydrocarbon production, supplying 20 percent of the U.S. oil output, continuous economic progress, less reliance on foreign oil, and energy independence as a nation is on the horizon.

Primera Energy LLC, an oil and gas industry leader in Texas, is helmed by Brian Alfaro. He has hopes for the nation to be self-sufficient in energy and fuel supply. Learn more about energy by following this Twitter account.

The oil and shale industry has been in decline these last few years, according to market experts. societal concerns on climate change and the potential effects shale gas extraction on the ecosystem have been turning off consumers. This has prompted oil and shale companies to seek alternative means of extracting shale.

One of these methods is hydrofracking, which is an improved form of fracking. The process of hydraulic fracking forces shale rocks to produce gas by injecting a certain area with high amounts of pressure. The process has had unexpected impacts to economies.

There are environmental concerns about the process. Technically speaking, hydrofracking does not emit harmful gas to the environment. Machinery can dig deep into the ground and extract the energy source directly. However, scientists are unsure whether this may weaken the rocks below and cause unforeseen effects. These alleged environmental effects are still to be fully studied but already have shifted the way economies are handling their natural gas perspective.

Hydrofracking is expected to support local economies and lessen reliance on foreign oil. This has political implications. This method of extraction means that each country could technically support itself in case of a global crisis. Government agencies are working closely with local oil and shale companies to ensure that no political affiliations are made in the manufacture or production of shale gas.

Despite hydrofracking being a relatively new process in the oil and shale industry, these two implications are being heavily discussed by those involved in the market. Current forecasts are not clear and determinedly noncommittal.

Stay up-to-date with the latest news and trends in the oil and shale industry by liking this Brian Alfaro’s Facebook page.